With the support of China and without the United States, the world’s largest trading bloc was born

Fifteen countries in the Asia-Pacific region today signed the world’s largest trade deal: the Regional Comprehensive Economic Association (RCEP), which is backed by China and excludes the United States.

After eight years of negotiations, 31 rounds of negotiations, 18 meetings at ministerial level and until six postponements of the deadline for closing negotiations, the agreement was initialed today by a summit in Hanoi.

The countries that compose it they concentrate more than 2.2 billion people and represent 29% of the gross domestic product (GDP) in the world. They are China, Japan, Australia, South Korea, New Zealand, Vietnam, Thailand, Philippines, Laos, Cambodia, Myanmar, Malaysia, Singapore, Indonesia and Brunei.

But in addition, all parties have stated that RCEP will remain open to India and that they will welcome India’s integration into the pact as soon as possible. With the RCEP, this is the first time that China, Japan and South Korea have participated in the same free trade agreement.

Once effective, the RCEP it will reduce tariffs, set common trade rules and facilitate supply chains. The agreement covers traditional and electronic commerce, services, telecommunications and investments. This will significantly increase the level of trade liberalization and facilitation and enhance the attractiveness and competitiveness of the region.

Chinese Premier, Li Kegiang, said the agreement it is “a victory for multilateralism and free trade“, and underlined that with the largest participating population in the world, the most diverse members and greatest development potential, this free trade block will certainly inject a new istimulate regional development and prosperity, and contribute to the recovery and growth of the world economy.

The research director of the Strategic Policy Institute of Australia, Jeffrey Wilson, assured that The treaty will change the region’s economy and strategy and will be vital for it to recover economically from Covid-19. “The 15 members will prioritize integration among themselves” and that this “could change the calculations of many governments” regarding the trade disputes between the United States and China.

In the face of the coronavirus pandemic, the global economy is in deep recession, global trade and investment are contracting, and protectionism and unilateralism are growing. “The signing of the RCEP has brought light and hope to people amid the current grave international situation, which shows that multilateralism and free trade remain in the right direction for the global economy and human progress“Li said.

RCEP allows people to choose solidarity and cooperation when challenges arise, instead of resorting to conflict and confrontation, and choose mutual assistance and support, rather than taking a “begging your neighbor” or “wait and see” stance, Li said.

The countries of Association of Southeast Asian Nations (Asean) played an important leadership role in the RCEP negotiation process, he cited Xinhua to Li, who promised to continue to support the centrality of Asean and promote the monitoring of the implementation of the RCEP.

The United States is absent from both the RCEP and the successor to the Trans-Pacific Agreement (TPP) led by Barack Obama, since in 2017 Donald Trump ordered the United States to leave this alliance, which leaves his country On two. trade groups covering the fastest growing region in the world.